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Tdnu 

4H-51 


Duke  University  Libraries 

Correspondence 
Conf  Pam  #451 


DTToaEbifia 


BETWEEN  THE  SECRETARIES  OF  WAR  AND  THE  TREA- 
SURY, ON  THE  SUBJECT  OF  A  DEFICIENCY 
OF  FUNDS. 


CONKEDERATK    StATKS    OK    AmkI^HU,  ) 

War  Dcparfnient ,  . 

Richmond,  Va.,  Dec.  29,  18(;4.      ) 

TTon.  G.  A.  Trenhoi,m,  Secretary  of  the  Treasury  : 

Sill : — I  have  examined  the  paper  of  Gen.  E  Kirby  Smith,  refer- 
red by  you  the  23d  inst  ,  in  which  the  indebtedness  of  the  Trans- 
Mississippi  Department  is  approximately  stated  for  the  year  endinjr 
30th  of  September,  1864,  at  $60  333,099 

He  includes  under  the  title  of  amounts  due,  20,277,465 

And  from  estimates,  40,055.634 

To  tl  is  amount  is  to  be  added  the  debts  contracted  since  that  date. 

A  portion  of  this  sum  has  been  remitted,  but  it  is  supposed  that 
the  debt  is  quite  as  Iarg;o  now,  or  larger  than  it  was,  the  30th  of 
September  ult. 

The  requisition-  of  the  Quartermaster  General  unanswered  now 
amount  to  the  sum  of  $128,360,584  87 

Those  of  the  Commissary  General,  34,002,684  65 

The  Ordnance  service  in  arrears,  5,640.388  00 

The  Medical  service         "  3.090,333  00 

The  Engineer  service       "  exclusive  of  Tr-Miss  ,    5,000,000  00 

The  Nitre  and  Mining  service,  5,600,000  00 

The  Department  is  constantly  importuned  for  the  payment  of 
money  due  for  necessary  supplies  which  have  already  been  furnish- 
ed, and  is  constantly  advised  that  supplies  cannot  be  obtained  for 
the  want  of  the  requisite  funds.  Its  whole  service  is  in  a  fair  way 
to  perish  from  inanition. 

1  am  satisfied  that  the  discredit  of  the  government  has  arisen, 
in  a  measure,  from  the  delay  that  has  been  made  in  the  liquidation 
of  these  pressing,  urgent  and  meritorious  claims.  I  am  aware  of 
t'lo  many  strong  considerations  that  induce  the  restriction  of  issue 
as  far  as  practicable,  but  I  venture  to  suggest,  that  the  currency 
itself  probal)iy  suffers  more  discredit  from  the  failure  to  meet  the 
engagoiMcnts  of  the  government,  than  could  result  from  inflation 
by  the  isHuc  neces.>^ary  to  redeem  them. 

You  can  scarcely  realize  to  what  extent  the  inability  or  failure 
to  meet  the  obligations  of  the  department  has  been  prolific  of  mis- 
chief.    It  has  been  the  occasion  or  excuse  for  desertion,  marauding, 


sale  of  clothiu^'  and  cquiptuLMits,  anion<:,^  soldier.^.  It  has  preveiftod 
the  accumulation  of  supplies;  it  has  affected  the  efficiency  of  trans- 
portation ;  it  has  produced  carelessness  or  indifference  among  con- 
tractors; officers  are  resentful,  and  soldiers  reckless,  discontented 
and  suffer  insr. 

]kIost  serious  apprelicri«ion  that  unless  tlie  indebtedness  of  this 
department  now  existinfr,  can  be  provided  for  without  delay,  that 
its  operations  cannot,  with  daily  increasing  obstructions,  embarrass- 
ments and  antagonit^ms  among  the  people  themselves,  be  carried  on. 
I  are  constrained  to  invoke  your  earnest  attention  to  the  subject 
to  urge  the  immediate  application  of  all  practicable  means  of  re- 
lief. 

Verv  truly  yours, 
(Signed)  JAMES  A.  SEDDON, 

Seretary  of  War. 


Treasdrt  Department,  } 

Richmond  Dec.  31,  1864  \ 

lion.  Jamb«  a.  Seddon,  Secretary  of  War: 

Sir  : — I  have  the  honor  to  acknowledge  the  receipt  of  your  let- 
ter of  30th  instant,  and  to  express  my  sincere  regret  at  the  embar- 
rassment arising  from  the  inadequate  supply  of  means  at  the  com- 
mand of  the  War  Department.  That  there  should  be  so  large  an 
amount  of  requisitions  unsatisfied  does  not  proceed,  as  supposed, 
from  the  effort  to  restrict  the  issue  of  treasury  notes.  However 
desirable  it  was  to  repress  the  enlargement  of  the  currency,  it  was 
clearly  impossible  t^  withhold  any  part  of  the  proporion  of  notes 
applicable  to  the  payment  of  expenditures.  After  making  the  no- 
cef'ssary  reservation  for  the  exchange  of  the  old  issue  as  provided 
by  law,  the  largest  amount  that  remained  and  could  bo  applied  to 
the  payment  of  expenditures  was  estimated  at  $200,000,000. 

Of  this  amount  $100,000,000  had  already  been  paid  out  on  re- 
quisitions up  to  Ist  July  1864,  leaving  only  $100,000,000  available 
to  meet  the  appropriations  for  the  six  months,  from  1st  July  to 
31st  December,  1^64.  The  appropriations  for  the  War  Depart- 
ment for  that  i)eriod,  are  $358,245,000 

The  requisitions  satisfied  in  the  same  period  are,  320,721,116 

The    amount  sent  to    the   Trans-Mississippi  Depart- 
ment in  notes,  bocds  and  certificates,  is  47,000,000 


367,721,116 
The  amount  paid  in  treasury  notes  from  1st  April  to  Slst  Decern- 


i^*^t?\ 


s 

her.  is  $397,260,209,  from  which  it  appears  that  uot  ouly  has  the 
$200,000,000  authorized  hy  the  provisions  of  the  Act  of  llth  of 
February,  been  ap))]ied  in  the  satisfaction  of  requisitions,  but  also 
a  further  sum  of  $197,260,209,  derived  from  the  sale  of  bonds, 
temporary  loans  and  other  sources. 

Jt  will  be  perceived,  too,  that  a  sum  equal  to  the  appropriations 
for  the  last  six  mouths,  was  paid  in  that  period,  and  thj  t  the  em- 
barrassmert  really  arises  from  the  pre  existing  indebtedness.  The 
data  for  determining  the  arrears  of  debt  in  July  last,  were  quite 
imperfect.  It  was  estimated,  by  my  predecessor,  at  $75,000,000, 
on  the  1st  of  April,  (Report  of  May  2,  page  4.)  In  my  report  of 
November  7,  I  estimated  it  to  have  been  $114,000,000,  on  the  1st 
of  July  last,  and  recommended  that  provision  should  be  made  for 
this  amount.  On  the  15th  of  December,  I  addressed  a  letter  to 
lion.  Y.  S  Lyon,  Chairman  of  the  Committee  of  Ways  and  Means, 
pressing  on  his  attention  tlie  necessity  of  prompt  action  in  making 
provision  to  meet  the  estimates  for  the  approaching  six  months  and 
the  arrear  of  debt. 

Among  the  resources  of  the  future,  I  rely  upon  obtaining  about 
$40,000,000  from  the  tax  on  sales  for  the  last  quarter  of  the  year, 
and  the  income  tax,  which  are  payable  on  the  1st  of  January,  1865, 
and  consequently  receivable  in  new  issues.  I  relied  upon  this 
source  to  defray  the  arrear  of  pay  due  the  army. 

The  accompanying  table  exhibits  the  appropriations  for  the  sev- 
eral Bureaus  of  the  War  Department,  and  the  amount  of  requisi- 
tions satisfied  for  them  respectively. 

Yours,  most  trulv, 
(Signed)  G.   A.  TKENflOLM, 

Secretary  of  the  Treasury. 


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